Article of Interest on Wills & Estates

THE DE FACTO SPOUSE

The line between de facto spouses and married spouses is becoming more blurred as time goes on. It is also becoming more difficult to define when a relationship becomes a de facto relationship.

What type of relationship are you in and how does that relationship impact on your estate?

Jim died in his 80’s leaving 3 children. He had partnered with Mary after the death of his wife. Mary had been a long-time friend to Jim. They lived together for 10 years but did not marry. Jim made no provision for Mary in his Will. Is Mary an eligible person to challenge Jim’s Will; and, if so will she be successful?

Michael was recently separated from his wife. He invited Michelle to live with him. They had been living together for 3 months with no long term commitment. Michael was killed in a car accident. Michelle made a claim against Michael’s large superannuation death benefit. Was she a de facto spouse at the date of Michael’s death; and, will she be successful in her claim? There is little doubt Michael’s wife will also be claiming. In the event Michelle makes a claim there will be competition.

Ron and Robert had lived together for 15 years. They had been financially dependent upon one another during the long term relationship. Ron died leaving the whole of his estate to his children. Ron made no provision for Robert. Had Robert been in a de facto relationship with Ron; and, is he an eligible person to claim against Ron’s estate?

De facto relationship means many things and if you are living in a close, personal relationship with another adult person, then you should obtain estate planning advice as to whether a de facto relationship exists which may impact on your estate. If a de facto relationship exists, then there needs to be careful planning so as to avoid a major dispute and financial disadvantage to those you want to provide for and those you ought to provide for.

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